CobaltProsper

How to start an LLC in Montana

By Brent Chudoba, editor Updated

Forming an LLC in Montana costs $35 to file the Articles of Organization with the Montana Secretary of State. After that you file an annual report of $0. Montana charges no franchise tax on a standard LLC. Articles of Organization filing fee is $35. The $20 statutory annual report fee is currently WAIVED for on-time filers (by April 15) for the fourth consecutive year running, 2024, 2025, 2026, and now 2027, per Secretary of State Christi Jacobsen's fee-waiver initiative; a late filing (after April 15) still costs $35 regardless of the waiver. Filers should budget $0 for the annual report if they file on time, but the $20 base fee is expected to return once the waiver lapses after the 2027 filing year.

How much does it cost to start an LLC in Montana?

Montana LLC costs (reviewed August 29, 2026)
ItemCost
Filing fee (Articles of Organization)$35
Annual report$0/year
Franchise or business taxNone
Registered agentRequired

Source: Montana Secretary of State, fee schedule reviewed August 29, 2026.

What are the steps to form an LLC in Montana?

  1. Name your LLC. Pick a name that is available and meets Montana naming rules, then check it against the Secretary of State's business database.
  2. Appoint a registered agent. Montana requires a registered agent with a physical in-state address to receive legal mail. You can be your own agent, or hire a service.
  3. File the Articles of Organization. Submit it to the Montana Secretary of State and pay the $35 fee. This is the step that legally creates the LLC.
  4. Get an EIN from the IRS. It is free and takes minutes. Do not pay a service for it. See how to get an EIN free from the IRS.
  5. Calendar your annual report. Montana charges $0 to keep the LLC in good standing. Missing it risks penalties or administrative dissolution.
  6. Open a business bank account. Keep business money separate from personal money so your liability protection holds up.

Does Montana have a franchise tax on an LLC?

No. Montana LLCs pay income tax based on pass-through entity income, not a separate franchise tax.

How is an LLC taxed in Montana?

By default, an LLC is a pass-through entity: it pays no income tax itself, and the profits flow to the owners' personal returns. Montana has a state individual income tax with a top rate of 5.65% (graduated brackets), so those profits are taxed on your Montana return on top of federal tax. Two brackets for tax year 2026 (per enacted HB 337, Ch. 227, 69th Legislature, amending 15-30-2103 MCA): 4.7% on the first $95,000 of Montana taxable income (MFJ/surviving spouse), $71,250 (head of household), or $47,500 (single/MFS/estates & trusts); 5.65% on the excess. This is a reduction from the prior 5.9% top rate. Per the bill's own effective-date and termination clauses, these 2026 brackets terminate Dec 31, 2026: for tax years beginning after Dec 31, 2026 (i.e. TY2027+), the top rate drops further to 5.4% with wider brackets ($130,000 MFJ / $97,500 HoH / $65,000 single).

An LLC can also elect to be taxed as an S-corp, which changes how owners pay self-employment tax. See LLC vs S-corp vs sole proprietorship and how self-employment tax works.

Sources